The following press release was posted 6/17/2008 by the Rhode Island General Assembly and can be viewed online at http://www.rilin.state.ri.us/News/pr1.asp?prid=5066
Senate Passes Sheehan Eminent Domain Legislation
Bill limits use of power for purely economic development purposes; provides protection, compensation for homeowners, renters
STATE HOUSE - The Rhode Island Senate has approved legislation sponsored by Sen. James C. Sheehan (D-Dist. 36, Narragansett, North Kingstown) that will define, limit and restrict the use of eminent domain powers - by state agencies or municipal governments - for purely economic development purposes.
The bill passed today by the Senate and now headed to the House of Representatives, (2008 - S2728A), "reaffirms our state's commitment to the rights of property owners," said Senator Sheehan.
(Similar legislation was approved by the Senate during a prior legislative session, but was not acted upon by the House that year.)
The bill prevents executive agencies that possess far-reaching eminent domain powers from unilaterally seizing private property for the sole purpose of economic development unless specifically authorized by an act of the General Assembly.
At the city and town level, the bill requires that redevelopment agencies secure council approval for proposed economic development takings of private property.
The bill also provides that owners of property that is taken will be compensated at a minimum of 150 percent of the fair market value of the real property, expenses incidental to transfer of ownership to the acquiring entity and any relocation expenses, including reasonable and necessary moving and reestablishment expenses.
New to the legislation this year is compensation for residents who are tenants of property taken for economic development purposes. That compensation will be a minimum of 150 percent of one month's rent on such a dwelling, along with relocation, moving and reestablishment expenses.
Senator Sheehan said he introduced the bill two years ago, again last year and again this year largely in response to the eminent domain land-grab in Connecticut that took private homes for a commercial/retail development and that was eventually allowed to stand by a ruling of the United States Supreme Court in 2005, Kelo V. City of New London.
"As was suggested by the Supreme Court at that time, states, and especially their legislatures, need to act to protect legitimate interest in property ownership from unjustifiable government seizure," said Senator Sheehan. "That's what I am attempting to do with this legislation."
"This bill," he said, " will help ensure that, in the instances that eminent domain is used, economic takings of private property truly benefit the general public first and foremost, as opposed to shareholders of a major corporation."
The bill spells out four permissible uses of eminent domain powers: providing for public ownership and use; providing for transportation infrastructure; providing for public utilities, telecommunications and common carriers, and eliminating an identifiable public harm and/or correcting conditions adversely affecting public health, safety or welfare.
"Unless this legislation is enacted, the Supreme Court decision, if left unchallenged, leaves none of us secure in our homes," said Senator Sheehan.
The bill was co-sponsored by Sen. John J. Tassoni Jr. (D-Dist. 22, Smithfield, North Smithfield), Sen. Michael J. McCaffrey (D-Dist. 29, Warwick), Sen. J. Michael Lenihan (D-dist. 35, East Greenwich, North Kingstown, Warwick) and Sen. Christopher B. Maselli (D-Dist. 25, Johnston).
For more information, contact:
Randall T. Szyba, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457